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Donald Trump Sued for Running Fraudulent University

Photo by Mindy Small/FilmMagic(NEW YORK) -- New York Attorney General Eric Schneiderman claims that anyone thinking they were going to get rich by attending a "university" run by Donald Trump was a chump.

In a $40 million lawsuit filed by the state, Schneiderman charges that when the real estate mogul offered free seminars under the guise of Trump University, it was actually a "bait and switch" to get people to pay $1,495 for a three-day seminar.

The attorney general added that the "Trump elite mentorship program" suckered people into laying out between $10,000 to $35,000 after being told that the three-day seminars weren't sufficient enough.

Supposedly, the real-estate investing techniques taught at Trump University were set up to help "students" become wealthy.  Schneiderman’s office says "dozens and dozens" of complaints were filed to his office.

On top of everything, New York State warned Trump as far back as 2005 not to call his operation a university and it wasn't until 2010 that the name changed to Trump Entrepreneur Institute.

Meanwhile, the lawsuit alleges “persistent fraud” and seeks to repay all 5,000 customers who paid for seminars nationwide.

In response, Trump says 98 percent of his students were satisfied and calls the lawsuit by the Democratic attorney general politically motivated. He tweeted as much Sunday.

Copyright 2013 ABC News Radio

ABC News Radio